Unlocking the Power of Partnership – A Framework for Effective CrossSector Collaboration to Advance the Global Goals for Sustainable Development International Development Services (IDAS) KPMG INTERNATIONAL 13B Contents Introduction 2 Acknowledgements 3 A new framework for collaboration 4 What are the Global Goals for Sustainable Development? 4 What are KPMG International and its network of member firms doing? 4 Partnerships are key 5 Discovering shared value 7 Moving from transactional to transformational 9 Building effective partnerships 10 Partnerships lifecycle framework 10 Core values of effective partnerships 11 Taking action: Eight factors for effective partnerships 12 Closing thoughts 19 Partnership case studies 20 Leveraging platforms for private sector action 22 Starting small and scaling up 23 Delivering long-term results for refugees 25 Lessons in educational partnerships 27 Beyond corporate responsibility: Building trust and identifying areas for cooperation to build shared value 29 Identifying shared value 31 Training future engineers in Vietnam 33 14B 15B 16B 17B 18B 19B 20B 21B 2B 23B 24B 25B 1 | Unlocking the Power of Partnership Unlocking the Power of Partnership | 2 Introduction With the adoption of the Global Goals for Sustainable Development (Global Goals), the line between what is good for business and what is good for development has changed. At KPMG International, we believe that partnerships will play an important role in achieving development impact while at the same time meeting the business needs of a rapidly changing world. As a partner of organizations in the public, private, and NGO/ civil society sectors, we have a deep appreciation for the transformative power of cross-sector partnerships to create a world that is more prosperous, inclusive, sustainable and resilient. In this report, we seek to catalyze greater understanding around this process by providing a framework for organizations that may have never engaged in a partnership or are seeking to improve their current approach. We have drawn on research, one-on-one interviews with organizations actively engaged in partnerships, and KPMG’s own insights to identify what we believe are the underlying values and key factors that must be considered to create, operate, and sustain an effective partnership. For the first time in history, we have the ability to eradicate extreme poverty and create opportunity for the projected 9 billion people who will inhabit the earth by 2030 to live productive, sustainable, and healthy lives. We hope the lessons in this report will provide actionable advice to organizations in all sectors and help to build effective partnerships to bring the ambitious vision of the Global Goals to reality. Timothy A.A. Stiles Global Chair International Development Services (IDAS) KPMG LLP (US) 59B Trevor Davies Global Head IDAS Institute KPMG LLP (US) 60B 3 | Unlocking the Power of Partnership Acknowledgements 0B We would like to thank the following organizations for participating in one-on-one interviews and/or contributing case studies. The insights and lessons shared from their experiences in cross-sector partnering have been invaluable to the development of this report. 26B • DLA Piper • Global Fund to Fight Aids, Tuberculosis, and Malaria (GFATM) • IKEA Foundation • International Committee of the Red Cross (IFRC) • Nestle • Silicon Valley Community Foundation (SVCF) • United Nations High Commissioner for Refugees (UNHCR) • United Nations Office for Project Services (UNOPS) • United States Agency for International Development (USAID) • World Cocoa Foundation (WCF) • World Wildlife Fund (WWF) © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 4 A new framework 1B for collaboration 5B The adoption of the Global Goals sets an ambitious framework for global development to the year 2030. The Global Goals build on the achievements of the Millennium Development Goals, recognize the important role of the private sector in development, and represent growing international recognition that inclusive and sustainable development are critical to long term global prosperity. A product of close consultation between UN member states, civil society, and the private sector, the 17 Global Goals include 169 targets ranging from eliminating extreme poverty, generating inclusive economic growth, and taking urgent action on climate change. Achieving these targets by 2030 requires new approaches to problem solving, the development of innovative financing mechanisms, and pioneering approaches to cooperation that will redefine the relationship between public, private, and NGO/civil society stakeholders. What are KPMG international and its network of member firms doing? 28B KPMG has been helping to shape the Global Goals with others in business, government, and civil society. Through our convening and speaking at several side events of the four related UN Summits – The World Conference on Disaster Risk Reduction (Sendai, Japan), The Conference on Financing for Development (Addis Ababa, Ethiopia), The Summit to Adopt the Sustainable Development Goals (New York, USA), and the Conference on Climate Change (Paris, France) – we demonstrate our commitment to applying our skills, resources and influence in pursuit of the Global Goals. We are also developing thought leadership and tools to inspire and equip companies to increase their contribution to sustainable development. These include the Sustainable Development Goals Industry Matrix which KPMG, together with the United Nations Global Compact, is developing to provide industry specific practical examples and ideas for action for each Global Goal. For additional information on KPMG’s activities around the Global Goals, visit www.kpmg.com/globalgoals Source: The Global Goals for Sustainable Development, sustainable development.un.org. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 5 | Unlocking the Power of Partnership We believe that cross-sector partnerships are key to advancing the global goals 29B As official development assistance shifts to a more catalytic role than leading role in the post-2015 agenda, cross-sector partnerships among the public, private, and NGO/civil society sectors will be key in achieving progress against the targets set forth by the Global Goals. In this context, stakeholders should consider the following: • Shifting development finance landscape: Global financial flows to developing countries have changed dramatically over the past two decades. Private capital, including philanthropy, remittances, and capital investment now far exceeds official development assistance and plays an important role in financing growth in developing countries. • Global Goals set an ambitious agenda for change: Inclusive and sustainable development is the key to long-term global prosperity. However, delivering on the post2015 agenda will require the combined strengths of the public, private, and NGO/civil society sectors. • Private sector increasingly adopting shared value principles: As more private sector firms seek to capitalize on growth in emerging markets, many are recognizing the business value of weaving social and environmental goals into their core business. Firms are now addressing societal issues while at the same time generating a fair return. • Complex and interdependent global issues: Urbanization. Climate change. Youth employment. Access to clean water. The challenges facing the world are more complex and interconnected than ever before. Shifting development finance landscape 30B Global Goals set an ambitious agenda for change PARTNERSHIP Private sector increasingly adopting shared value principles Complex and interdependent global issues Source: KPMG International, 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 4 Unlocking the Power of Partnership | 6 © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 7 | Unlocking the Power of Partnership 2B Creating shared value 6B © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 8 Partnership is more than just collaboration on ad-hoc projects. It is about moving beyond responsibility for independent results to a relationship that involves co-creation, shared risks and responsibilities, interdependency, and organizational transformation. True partnership is about identifying shared value and leveraging the combined strengths of each partner to achieve a level of impact that could not be accomplished independently. Different sectors are increasingly understanding sustainability, citizens, and markets in the same way. Through the lens of shared value, business can identify opportunity in addressing social problems. In the context of the Global Goals, shared value represents the coming together of market potential, societal demands, and policy action to create a more sustainable and inclusive path to economic growth, prosperity, and well-being. M W The issues we face are so big and the targets are so challenging that we cannot do it alone. When you look at any issue, such as food or water scarcity, it is very clear that no individual institution, government or company can provide the solution. 61B – Paul Polman, CEO, Unilever1 GOAL: Sustained well-being of markets, citizens, planet, and society. Principles Approaches Desired Outcomes Source: KPMG International, 2015. 1 Confino, J. April 24, 2012. Unilever’s Paul Polman: challenging the corporate status quo. The Guardian. http://www.theguardian.com/ sustainable-business/paul-polman-unilever-sustainable-living-plan 2 Shared value was first introduced as a concept by Prof. Michael E. Porter and Mark R. Kramer. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 9 | Unlocking the Power of Partnership Moving from transactional to transformational Delivering on the ambitious vision of the Global Goals will require partnerships that define success more broadly than financial returns and programmatic outcomes. Contract based Public-Private Partnerships (PPPs), including those normally found in infrastructure arrangements between a public funder and a private developer/ operator, will remain an important part of the development landscape. However, partnerships that emphasize transformation over transaction will be critical in achieving the scale and depth of impact required to catalyze substantial change. TRANSACTIONAL Commercial • Exchange of goods, services, and payment for the performance of specific activities. • Partner interaction is based on contractual terms such as those commonly found in major infrastructure publicprivate partnerships (PPP). Philanthropic TRANSFORMATIONAL Collaborative • Focus on charitable donation of funds, time, or in-kind resources. • Partner interaction typically limited to accountability on how funds are spent but can include limited joint planning of priority areas. • Organizations share information and coordinate efforts but do not share decisionmaking power. • Limited transfer or combining of resources and programs. • High degree of partner autonomy with no permanent organizational commitment. Strategic Integrative • Partners share decision-making power and exposure to risk. • Strategically designed to achieve sustained impact and scale. • Involves co-creation of partnership objectives, resource sharing, and joint management of a partnership function. • Results in learningbased transformation at the partner and partnership level. • Partners leverage core competencies to achieve partnership aims. • Addresses systemic issues and has the potential to enable catalytic change across geographies and sectors. JOINT DECISION-MAKING 27B LEARNING-BASED ORGANIZATIONAL TRANSFORMATION SCALE AND SUSTAINED IMPACT Source: KPMG International, 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 10 Building effective partnerships Although there is broad consensus on the value of partnerships, unlocking their full potential means moving the conversation from ‘why to partner’ to ‘how to partner.’ Organizations that are eager to engage in partnership often times overlook some key questions amidst the enthusiasm of working together. These include: • How do you identify partners? • How do you build trust? • On what issues will you partner? • What resources can you bring to the partnership? • How will you know if the partnership is successful? Partnership lifecycle framework 31B At every stage in the partnership process, there are rewards and challenges. While each partnership is unique, there is broad similarity in how organizations engage with each other and develop a partnership. Although the diagram below illustrates a common approach, it is important to remember that this is a learning process for all involved. The actions will never be so clearcut or the phases so distinct. IDENTIFYING AND DEVELOPING IMPLEMENTING AND MANAGING Partner Identification Partnership Agreement Resource Mapping Co-design and Co-creation Discovery Meetings Governance Framework Relationship Building Partner Selection Meetings and Documenting Progress Acknowledge Individual Partnering Objectives CLOSE DOWN AND EXIT SUSTAINING IMPACT ASSESSING AND REVISING Inviting New Partners Monitoring and Evaluating Scaling Up Institutionalizing the Partnership Accountability and Reporting Capacity Building Lessons Learned Course-correction Exit Assessment Source: KPMG International, 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 11 | Unlocking the Power of Partnership Core values of effective partnerships 32B Based on interviews with organizations actively participating in cross-sector partnerships, a review of existing research, and our own insights, we have identified four core values that we believe are at the heart of creating, operating, and sustaining effective cross-sector partnerships. Equity and respect: Acknowledge the value that each organization brings to the partnership. Resource contributions, organizational culture and individual motivations for joining the partnership may differ, but the power of partnership is built on harnessing each partner's key strengths. Transparency: Sharing information, maintaining clear lines of communication, and having honest discussions around difficult issues are important. Trust can be lost over the course of a partnership if transparency is not maintained. Genuine commitment: Come to the partnership with good faith. It is ok to acknowledge individual partner benefit but keep the focus on creating a partnership with a shared vision and definition of success. Patience and persistence: Trust and familiarity, two cornerstones of effective partnerships, are built up over time. Being patient creates space for partners to break through, not break down, during difficult times. Source: KPMG International, 2015. © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 12 Taking action: Eight factors for effective partnerships Translating these core values into actionable advice is key. The information presented here can be used as a framework for partnership success. Establish the need for partnership and make the approach 7B The decision to partner can be daunting but it comes down to one key question: Are we better off together than we are alone? Partnerships are a means to achieving a shared vision that no one partner could achieve on its own. Setting a clear case for partnership from the beginning is critical to future success. Define the issue the partnership will tackle • What is the partnership meant to achieve? Who are you trying to help? Although this can evolve throughout the life of the partnership, having a clear understanding of the issue, the desired impact, and the intended beneficiaries will help to ensure that the partnership is relevant and impactful. 62B Determine if partnership is the right choice • Admitting that you cannot do it alone is an act of vulnerability. It is an even bigger step to decide to partner with another organization. Organizations must determine if partnership is the most appropriate course of action to achieve their vision. 63B • If a partnership already exists, assess how a new one may overlap or complement the existing one. Identify what the partnership needs in order to be successful • Every organization brings a unique set of resources ranging from funding, to technical expertise, to credibility with government, to access to intended beneficiaries. Acknowledging what each organization can and cannot achieve with its own resources is key to identifying gaps and selecting appropriate partners. 64B In this globalized world, with multiple actors and a diffusion of power and resources, we now look beyond state actors, to create effective partnerships for change. 6B – Julie Bishop, Minister for Foreign Affairs, Australia3 • Develop selection criteria to identify partner organizations that have the appropriate strengths, resources, and influence that the partnership needs to be successful. Think about where to make the approach • It is important to understand how an organization’s culture influences its approach to partnering. Working with a small NGO, it may be entirely appropriate to initiate the relationship through the CEO. Public agencies and large private sector businesses, on the other hand, may have dedicated program officers that are the best points of contact. 65B • Build the case for partnership by achieving buy-in at both the operational and leadership levels. 3 http://foreignminister.gov.au/speeches/Pages/2015/jb_sp_150927a.aspx. Retrieved 29 September 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 13 | Unlocking the Power of Partnership Due diligence is key 8B Agenda 2030 and the 17 Sustainable Development Goals define the world we want – and how to get there. Now we have to take that blueprint and employ the resources and ingenuity needed to transform our societies for sustainable growth that benefits all people. That will involve intense collaboration among governments, the private sector, civil society and international organizations, including the United Nations. 67B – Ban Ki Moon, Secretary General, United Nations4 Performing a due diligence check can help to identify potential partners that are aligned in their values and have a shared vision of impact. This is an important but easily overlooked step amidst the enthusiasm for the potential benefits from collaboration. Partners will share in both successes and failures so selecting the right set of partners is an extremely important step. Ask hard questions • What are the meaningful drivers that motivate organizations to engage in the partnering process? Understanding these deeper issues provides important context as to why organizations should engage with one another, devote resources, invest time, and share risk. 68B Investigate at both the operational and personnel level • If a potential partner has a history of unethical operations, poor performance, or limited leadership, it is important to consider how their participation may impact the partnership. 69B Assess the risks and rewards of partnership • All partners anticipate that the rewards of engaging in a partnership will outweigh the potential risks. It is unwise to partner simply because of the organizations involved. 70B • Since brands become co-mingled in a partnership, it is important not to overlook the potential risks. These risks can include reputational damage, loss of influence, and heavy upfront investment of resources. Build and maintain trust Trust lays the foundation for open and honest conversations, achieves partner buyin, and encourages commitment to the partnership at a deeper level. It is critical to sharing knowledge among partners internally and agreeing on how to communicate successes and areas for improvement. Have honest conversations, use shared language, and listen to concerns • The way in which partners communicate can make or break a partnership. It is important to agree on shared language that builds consensus rather than reinforces differences. 71B • Communicate in an honest, clear, and concise way. Don’t be afraid to speak frankly about key issues such as differences in resources, power balance, influence, and level of engagement. • Listen actively, it is crucial to any relationship. It demonstrates genuine interest in a partner’s concerns, helps build respect, and lays a foundation of trust. 4 http://www.un.org/sg/statements/index.asp?nid=9012. Retrieved 29 September 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 14 Meet regularly • Good communication requires more than emails and conference calls. Establishing a regular schedule of interactions, such as in-person meetings, is key to building trust. 72B • In the early days in particular, face-to-face interaction is even more important. “Discovery meetings” can be an important tool to uncover shared interests and values, differences in organizational culture, and specific capabilities and limitations. Acknowledge and respect differences • There will be differences among partners in a number of areas including organizational culture, availability of resources, and individual motivation for joining a partnership. Acknowledging and respecting these differences is just as important as identifying shared values and a common vision. 73B Set out a clear vision of objectives, understanding of mutual benefit, and roles and responsibilities 9B Successful partnerships set out clear objectives, a plan for how to achieve them, and the benefits in doing so – both for the partnership as a whole, and for individual partners. Partner organizations must often justify the investment of resources by demonstrating clear business and development benefits. Align interests and objectives for the partnership • Document each organization’s interest in the partnership’s success. This exercise will reveal the common overlap on which to build the partnership. 74B Acknowledge individual benefit • In addition to the collective impact of the partnership, each partner organization has the right to benefit for their own goals. Partnerships are more successful if individual goals and objectives are openly communicated, understood, and respected. 75B Set roles, responsibilities, and expectations at the beginning and manage throughout • Each partner should take on a role in the partnership that relates to their core competencies. Clearly defined roles and responsibilities create accountability within the partnership. They also help to prevent potential misunderstandings by laying out specific action areas based on a partner organization’s area of expertise. 76B 5 The nexus between government and business to address global challenges requires collaboration with the international donor community, philanthropists, and local nongovernmental organizations through shared purpose. It is only by working together that we can achieve the new goals and build a world that is worthy of us and our children. 7B – Tony Elumelu, Chairman of Heirs Holdings and Founder, Tony Elumelu Foundation5 http://time.com/4052700/un-sustainable-development-goals-africa/. Retrieved 29 September 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 15 | Unlocking the Power of Partnership Invest the time, people, and resources to manage the relationship 10B The most successful partnerships are those in which all partners make the necessary investments both within their own organization and in the partnership itself. Committing the appropriate human, financial, and organizational resources up front can make operating through the life of the partnership more effective. Engage sponsors • Successful partnerships require high-level sponsorship at all partner organizations. Sponsors enable partnerships to secure organizational resources including funding, staff time, and meeting spaces that are critical to their success. 79B Empower champions • Champions are individuals that are deeply committed to the success of the partnership and often lead it from concept to implementation. As the partnership develops, they help to navigate internal and external roadblocks to the partnership’s success. 80B Governments, international and regional organizations, the private sector, civil society and academia can and must come together in new ways to take action comprehensively on the global water crisis. 78B Appoint relationship managers who are responsible for day to day management • Providing a dedicated point of contact establishes continuity in daily interactions among partners. For donor agencies, establishing partnership offices that are staffed with relationship managers can assist private sector and civil society partners to navigate bureaucracy and help unlock the partnership’s maximum potential. 81B – Jan Eliasson, Deputy Secretary General, United Nations6 Develop a network of people who are committed to the partnership’s success • Build the network up and down. If a partnership is initiated from the top of an organization, it is important that leadership explains and demonstrates why it is aligned with its core business. If a partnership is initiated at the staff level, it is important to sensitize the benefits up through the organization and build internal support among key leaders. 82B 6 http://www.un.org/press/en/2015/dsgsm896.doc.htm. Retrieved 29 September 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 16 Design for sustainability and implement for success 1B True partnerships are more than just an exchange of funds. They are about co-creation and design, shared decision making, and pooling of resources. Adopting this mindset from the beginning enables partner organizations to be more responsive to unforeseen challenges. Co-create an implementation strategy that lays a clear plan to reach the objectives • Setting objectives and developing a clear action plan is an important step in identifying, tracking, and achieving partnership aims. Provide opportunities for partner organizations to give input on how the goals and objectives can be achieved. 83B Jointly develop a flexible governance structure to support a variety of solutions • How will you make decisions and resolve issues? Who will speak on behalf of the partnership? Who will run meetings? Using a structured process to partnership operation can help reduce vulnerability and streamline the process. 84B Decide on the time stamp of the partnership • Design and success of long-term and short-term partnerships look very different. Defining the length of the partnership helps in establishing milestones and setting expectations of what can and cannot be achieved. Today our world is changing faster than ever before – economic, geopolitical and environmental challenges abound. A company must invest in the key ingredients of profitability: its people, communities and the environment. 8B – Warren Buffett7 Chairman and CEO, Berkshire Hathaway 85B Give people time to seek internal commitment to solve problems • What does the other partner need to have the partnership go forward? Think long term about relationships. It’s not just about one time transactions, it’s about making sure the relationship is working for both sides. 86B Start focused to make sure it is scalable and replicable • Concentrate your efforts on a few specific areas that are explicitly linked to the partnership’s aims. Do not focus on too many broad issues. Over the course of the partnership you can create value as you jointly identify key areas of overlap. 87B • Once early success has been established, scale fast to increase the impact for both partners and beneficiaries. 7 http://www.jm.com/content/dam/jm/global/en/generaldocuments/sustainability/2011JMSustainabilityReport.pdf. Retrieved 29 September 2015. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 17 | Unlocking the Power of Partnership Hold each other accountable and learn from mistakes 12B Accountability in partnerships is a key factor for long-term success. Although conversations on this topic are rarely easy, they help to ensure that partners individually deliver on promises. Mechanisms to monitor progress, evaluate partner actions, and enable accountability help to make sure the partnership is achieving its goals. Regularly assess deliverables, time frames, and allocated resources • Establish a framework that clearly lays out milestones, target achievements, and performance measures. Identify data requirements and put in place mechanisms to collect timely and high-quality data to enable effective management of the partnership. This provides a mechanism for partners to continuously evaluate progress against outcomes and the overall mandate of the partnership. 89B • Identify short-, intermediate-, and long-term outcomes you expect to achieve as a result of your collective work. Have specific due dates for tasks and goal completion, and set expectations around delivery. When planned reality doesn’t happen, learn from missteps and course-correct • If there are changes in responsibilities, vision, resource availability, or if expected objectives are not met, recognize them and adapt. Look at stumbling blocks as learning opportunities. Reassessing, redesigning or exiting is ok. It is more important to focus on impact and return on investment than pure activity. 90B Focus on lessons learned for future success • Each partner has different expectations around lesson learning and feedback. Build capacity for future partnering success by going beyond the outputs and outcomes conversation. 91B © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 18 Learn the ‘Art of Exit’ A successful partnership does not have to exist in perpetuity. In fact, the most successful ones can have a designated end date in mind. Since not all partnerships will work, knowing when to move on is equally as important as knowing when to press on. Go into the partnership understanding that it may not be successful • Address contingency plans at the beginning of the partnership rather than the end. It is easier to deal with this in times of calm than crisis. 92B • Set up a plan and identify, at the staff level, how the decoupling process will be implemented. As systems and resources become intertwined, closing down a partnership is more difficult than just walking away. Exit gracefully and celebrate the successes • Don’t make it personal. Partner organizations and individuals may have to rely on each other in the future. 93B • Even though the partnership may be ending, it is important still to recognize the key achievements and positive impact the partnership accomplished. This allows organizations the chance to reflect on successes and consider how to apply lessons learned to future partnerships. © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 19 | Unlocking the Power of Partnership Unlocking the Power of Partnership | 18 Closing thoughts 3B The adoption of the Global Goals sets a framework for new business models, new ideas, new relationships and new technologies to deliver long-term and sustainable solutions to seemingly intractable global challenges. At KPMG International, we firmly believe that cross-sector partnerships will play a fundamental and central role in achieving these results for people, planet, and prosperity. As the line between what is good for business and what is good for development continues to fade, we believe that organizations will increasingly look to partner across sectors to magnify impact, enhance effectiveness, and create new market opportunities. © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 20 Partnership case studies 4B We are grateful to our partners for preparing and sharing the following case studies for inclusion in this report. We believe the following case studies help to illustrate the various approaches to partnership and highlight important lessons learned from each organization’s experience. © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 21 | Unlocking the Power of Partnership © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 22 Leveraging platforms for private action World Cocoa Foundation (WCF) 3B The cocoa industry created the WCF in 2000 to be the focal point and thought leader on cocoa sustainability. Today, over 115 companies of different sizes, functions and geographies have joined in an effort to improve the farming and conditions in cocoa growing communities. The philosophy of WCF and its industry members has always been to be “farmer focused” and work in partnership with others who bring technical, human and financial resources to leverage our understanding and impact. Early centralized partnership models 34B One of WCF’s earliest partnerships was through the Sustainable Tree Crops Program (STCP) which was cofounded by WCF company members and USAID. The implementing partner was the International Institute of Tropical Agriculture (IITA) which provided farmer field school training to cocoa producers in Côte d’Ivoire, Nigeria, Cameroon and Ghana. STCP was governed by participating WCF company members, USAID and government representatives from each of the African countries. The Steering Committee met semi-annually to evaluate progress on the program. Transformational partnership models 35B In 2009, WCF and 16 of its company members embarked on the Cocoa Livelihoods Program (CLP), a partnership with the Bill & Melinda Gates Foundation, with the intention of doubling the incomes of over 200,000 cocoa farmers in West Africa. The CLP model was different in that implementation was the responsibility of participating companies through a matching grant mechanism. Participating companies selected their own implementing partners and matching grants were performance based. This model encouraged private sector approaches and innovations versus the former centralized STCP model. The companies also included a focus on gender and food crops production in their matching grants based on the framework set by the Foundation. Similar to STCP, CLP has been governed by a Steering Committee composed of the Foundation, company members, and host government representatives. New partnership horizons 36B In 2014, eleven of the leading WCF member companies came together to develop a long-term strategy in West Africa called “CocoaAction.” The strategy was designed to create conditions for transformational and scalable changes in West Africa’s cocoa sector. The distinction from other partnerships is that it has the senior most levels of support from the companies as well as technical support for companyimplemented programs which will provide productivity and community development support to over 300,000 cocoa farmers. The companies agreed to a common results framework to measure progress which has been endorsed by the governments of Ghana and Côte d’Ivoire. CocoaAction enables industry members to more easily partner with other development partners at a scale and timeframe which ensures commitments beyond the typical lifecycle of a traditional project or program. The strategy is governed by senior executives in the companies who also meet periodically with government leaders to consult on progress. Thus far, CocoaAction has successfully signed important MOUs with African governments on improved planting material and fertilizer distribution, and forged in-country public-private partnership platforms with government representatives responsible for cocoa in their countries. If the CocoaAction model proves to be successful, the goal is for it to be implemented in other African countries and in other regions of the world. Photo courtesy of World Cocoa Foundation © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 23 | Unlocking the Power of Partnership Starting small and scaling up KPMG and Enactus The KPMG-Enactus4 partnership has spanned close to two decades, inspiring confidence within lives and communities across 115 countries, and helping to develop future leaders in over 36 countries. What began as a sponsor relationship has grown into an exclusive partnership that harnesses the creativity, innovation, passion and energy of a new generation of future leaders, and channels it towards creating positive change around the world via entrepreneurial action. Our global leadership team not only saw the good our teams were doing in their communities; they also recognized the opportunities that Enactus would provide to create relationships with senior executives of major corporations who shared a passion for a meaningful cause. The journey 94B – Lord Michael Hastings, Global Head of Citizenship, KPMG. 37B The partnership with Enactus was initiated in 1996 when it were still known as Students in Free Enterprise (SIFE). Originally a program restricted to the U.S., Enactus used to run a national competition for student teams to compete against each other on the basis of the impact they had achieved through their projects. The basis of attraction for any business leader who attended a SIFE competition was the level of positive energy they experienced from the students, and the strong urge they witnessed from them to make a positive impact within the communities they lived. As SIFE, the organization developed a catch phrase to describe business leaders who had attended a competition and were impressed – ‘they’ve been SIFEd’! True to the catch phrase, the KPMG leaders who were among the first to attend the competition were impressed and saw the significant potential the organization had to help harness the energy and positive will of a new generation of young leaders to empower change within the world. KPMG also saw the potential to develop the program to attract clients/businesses on the basis of its impact to become a unique networking opportunity around positive development. KPMG’s global network of member firms came together to provide leadership instrumental to SIFE’s worldwide expansion and helped introduce the first SIFE World Cup in 2001. Global growth 38B KPMG played a pivotal role in terms of helping Enactus grow globally. KPMG partners involved in Enactus had a fair understanding of their growth plans, and strategically engaged various partners from relevant member firms within target countries. As a part of the commitments made to the partnership, KPMG has provided strategic support to Enactus to help enable global expansion by providing support around: • Launch – providing front-end operation support to help set up national programs in countries where operations previously didn’t exist. • Coordination and expansion – using existing communication networks to help share information, updates, and best practice ideas internally and externally. • Time and resources – apart from providing financial support, KPMG believed in the value of ‘putting our skills to use,’ and have traditionally engaged its partners and people to support the national and regional programs. 4 Enactus is an international non-profit organization that brings together student, academic and business leaders committed to using the power of entrepreneurial action to improve the quality of life for people in need. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 24 Until 2006, the partnership was driven through the KPMG U.S. relationship. However, this had its challenges towards driving the global expansion. Based on the number of national relationships it had built over the course of 10 years, KPMG incorporated the Enactus partnership as a part of its global citizenship strategy. This increased levels of coordination and support towards the partnership, and also brought in renewed support from KPMG’s global marketing and recruitment teams to better leverage the partnership. Currently, KPMG has over 34 people representing the organization in over 30 Enactus national, regional, and global boards. KPMG engages over 300 of its people annually by encouraging them to be mentors, advisors, and judges in various Enactus events. Our network of member firms leverages its brand via the partnership with over 40 global clients. KPMG also provides operational resources for Enactus (i.e. program managers, coordinators, and volunteers) to help support their national operations. KPMG member firms recruit from the exceptional talent pool Enactus provides. For example, KPMG partnered with Enactus students from Universidad del Valle de Mexico on Project Pasni. The project repurposed used vinyl advertising banners into chic products that were able to generate income for local artisans and their families. The exclusive partnership 39B Given the level of strategic support KPMG has provided over the years, Enactus provides KPMG exclusive access to the program as the preferred “Big 4” firm. KPMG has the ‘right for first refusal’ with any new national program that is in development, and their national/global events provide KPMG with exceptional branding opportunities. Similarly, KPMG proactively helps to grow the program within countries with significant opportunity and potential for high levels of positive impact. With businesses like Walmart, Unilever, and KPMG supporting Enactus, it is a partnership opportunity for business to play an essential role in advancing work towards improving lives, strengthening communities, and developing a new generation of young and socially responsible business leaders for the future. Photo courtesy of KPMG and Enactus © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 25 | Unlocking the Power of Partnership Partnerships are becoming more sophisticated and an acknowledgment that there is more value in working together – it’s not only about access to products, access to markets, access to knowledge or driven by limited CSR budgets – rather a focus on holistic partnerships that create sustainable impact for society, the state, and business. Delivering long-term results for refugees 95B – UNHCR United Nations High Commissioner for Refugees (UNHCR) and the IKEA Foundation 40B In 2009, the CEO of the IKEA Foundation and the Head of International Corporate Partnerships at UNHCR, the UN refugee agency, hit it off at a dinner discussion. At the time, IKEA had limited experience in the humanitarian sector and UNHCR was just starting to develop long-term partnerships with the private sector. Today, six years later, the situation is very different. The IKEA – UNHCR partnership has become the largest of its kind between the private sector and the UN. The financial contributions are significant, in the range of $170 million so far. The breadth of the partnership has evolved to knowledge sharing, co-creation and funding of an Innovation unit within UNHCR, and raising public support for refugees in need of lifesaving shelters. There is robustness in the partnership and a clear trajectory for future collaboration. What are some of the keys to the successes of this partnership? Importance of champions 41B There is no doubt that champions on both sides have been critical for success. Individual commitment, vision, personal drive and persistence have been essential to manage through changes in key personnel, political direction, and internal challenges. The champions in this partnership achieved wide-spread buy-in by articulating the value each side brought to the relationship: for UNHCR, it was its primary purpose to safeguard the rights and well-being of refugees. For IKEA, it was innovative product design and a desire to have a positive impact. Shared values and interests 42B Developing the relationship required long conversations to understand what was important to each organization. These discussions revealed where their individual priorities overlapped. This process allowed them to build a deep level of trust between the two organizations and to develop a key factor in any successful partnership – a solid appreciation of shared values and interests. In this case, both organizations found a mutual interest in improving the living conditions of children, women, families, and refugees. Long-term view 43B Partnerships are a give and take. They require an element of trust and longterm engagement. Partners need to acknowledge that there may be unforeseen challenges that can cause delays in moving the partnership forward. © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 26 The private sector approach with quick decision-making, a constant drive for improved quality, and tight management of costs can stand in contrast to the bureaucracy and slower pace of change typical of large multilateral entities. The partnership overcame this challenge in part by IKEA’s willingness to bridge fund UNHCR staff time to work on collaborative projects before budgets were available – and before the business case had been proven for such spending. This provided UNHCR the flexibility to take on new initiatives and eventually led to the creation of the agency’s Innovation unit. By developing an understanding of the operational realities, interests, and expectations of the other partner, each side was able to exercise the necessary patience and persistence to manage the partnership for the long-term. Results 4B The partnership has had major impacts in a number of ways. Support to specific refugee camps has had tangible results: in Iraq, Syria and Lebanon 100,000 refugees received mattresses, blankets and winter items; in Bangladesh, 10,000 refugee children received primary education and 3,100 refugees received vocational training; in Sudan, over 15,000 received primary education and 8,500 received micro loans for income generating activities; and in Ethiopia 9,600 shelters. In addition, and potentially of even greater significance, innovation through cross pollination between the two organizations’ knowledge, culture and opportunities have resulted in the design of new shelters – to replace the traditional tents of refugee camps – and solar powered lights, with more innovations to come. The difference is that we’re not simply writing checks. Instead, we’ve taken a holistic approach in developing this partnership. We view the partnership as an investment to delivering long-term results for refugees and achieving shared value for both IKEA and UNHCR 96B – IKEA Foundation IKEA stores have also become a place where customers learn about refugees and UNHCR’s work. In a new program, which is currently being expanded, customers have an opportunity to support refugees through their purchases: a one Euro donation is made for every LEDARE LED lamp sold. In 2015, about $8.73 million was raised in this way. Conclusion 45B This partnership serves as an example of what can only be achieved by working together. Neither partner could have achieved these results alone. Champions on each side were key to building trust and sustaining momentum. The partnership has matured beyond a traditional relationship to one that is characterized by collaborative engagement, innovation, and a long-term view to achieve results that make a lasting difference for refugees. Photo courtesy of UNHCR. An overview of RHU shelters installed in Hilaweyn Refugee Camp, Ethiopia. C. Earney/UNHCR © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 27 | Unlocking the Power of Partnership Lessons in educational partnerships Silicon Valley Community Foundation (SVCF) ...it requires authenticity, trust and respect among all partners involved to guarantee that an honest dialogue about what’s working and what’s not can truly be achieved. 97B – SVCF The common core state standards (CCSS) are the most important shift in US educational policy in the past several decades. They represent a significant opportunity to prepare all students to be college, career and life ready when they graduate from high school. In order to implement these standards effectively, significant preparation and planning is required of school districts, teachers and parents. To respond to this opportunity, the SVCF launched the Silicon Valley Common Core Initiative (SVCCI). Through this three-year effort, SVCF supports five collaboratives, or groups of district leaders, representing 27 of the 54 districts in Santa Clara and San Mateo Counties in California. The SVCCI includes a diverse set of partners at different levels who work together to achieve economies of scale, access the best resources available and facilitate peer learning. As this initiative seeks to achieve systemic change in a still evolving field, SVCF took a unique approach under the philosophy of emergent philanthropy. This approach requires a co-creation of strategy to ensure its relevance to all partners, a focus on learning and real-time adaptation as well as a conscious recognition of the dynamic landscape in which districts are operating. Through this process, each of the school district collaboratives co-developed a proposal for funding and engagement – the first time something of this scale had ever been accomplished in the region. The selected collaboratives then worked side by side with SVCF to design a CCSS implementation plan, and invest in teacher professional development, raising community awareness of the CCSS and assessing technology needs. SVCF engaged partner funders and community stakeholders to be part of the process as well. In its first year, the SVCCI was able to reach 500 teachers and nearly 150,000 students. Building diverse partnerships 46B Partnership among diverse stakeholders continues to be paramount to the success of this initiative and is thoughtfully integrated at every level. There are three primary groups of partners that are integral to this initiative. First are the school district administrators, whose leadership is critical to developing the collaboratives and the related three year strategic plans. Second, SVCF formed an internal crossorganizational project team to ensure that the interests of the community partners, corporate donors, parents, media and interested individuals were represented and incorporated into the goals and ongoing projects within the initiative. Finally, a diverse set of funders are investing in the initiative including individuals, family foundations, institutional funders and corporations. Each of these funders has a unique approach and relates to the initiative in its own way. For instance – corporate partners are concerned about the CCSS as it relates to workforce preparedness in STEM fields, whereas families may be focused on parental engagement. The diversity amongst the partners and key stakeholders required SVCF to be nimble and adaptive while maintaining the vision of the initiative. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 28 Best practice lessons 47B In the past two years, SVCF has identified some best practices for managing multisector partnerships: • Ensure alignment on the vision. Spend time together on the front-end articulating common goals and strategies for the work. • Invest in the backbone. Identify and invest in a project manager to coordinate efforts, document agreements and ensure accountability required to drive the partnership towards a common vision. In the case of SVCCI, SVCF funded expert facilitation for the collaboratives and built its internal capacity to manage the initiative. • Collect meaningful data to drive action. Invest in formative evaluation that can inform the work going forward and do it with enough frequency to allow for course correction. • Learn quickly and design collaboratively. Process data together to share learning and be able to quickly pivot to successful approaches. • Embrace flexibility. There is a high probability that some aspect of the partnership or initiative you’re working on will not go exactly as planned. By building room for flexibility into the partnerships you are setting them up for greater agility and sustainability. Conclusion 48B It is important to note that utilizing an emergent approach to partnerships can be incredibly effective, but it does require a commitment towards a shared vision, significant investment in time and nuanced resourcing from all of the partners. Most importantly, it requires authenticity, trust and respect among all partners involved to guarantee that an honest dialogue about what’s working and what’s not can truly be achieved. If these fundamentals can be realized, a multi-sector partnership can be catalytic in addressing social problems and achieving systems-level change. Photo courtesy of Silicon Valley Community Foundation © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 29 | Unlocking the Power of Partnership Beyond corporate responsibility: Building trust and identifying areas for cooperation to build shared value In many respects, successful partnerships are the ones you have to work on. Partnerships where you learn from one another. That’s why we’re still a partner with the Red Cross. Nestle and the International Federation of the Red Cross (IFRC) 98B – Nestle The partnership between Nestle and the IFRC illustrates the dynamic nature of how partnerships can evolve over time. What started as traditional Corporate Responsibility (CR) has evolved into a deeply integrated relationship and has expanded from merely giving funds to joint planning of programs, shared responsibility and decision making, and embedding innovation into their joint activities to create shared value. The partnership commenced in 2002 as a classic corporate donor partnership. Nestle gave funds to the IFRC as part of its CR initiatives. The partnership was in its infancy and there wasn’t demand to expand or scale the partnership, which limited interactions between the two organizations to accountability of how the funds were spent. However, both organizations soon started to notice overlaps in several key focus areas and an opportunity to create shared value. In 2004-2005 they collaborated on a very extensive HIV awareness campaign in Nigeria. In addition to committing financial resources, they decided to deepen the partnership and commit additional knowledge and resources to the relationship. As Nestle and the IFRC staff began to work more closely together, both organizations saw the potential of the partnership to go beyond just funding. They could achieve greater impact in the communities and countries in which they worked, inspiring them to think about the other areas in which they could collaborate. Our partnerships allow us to achieve together what we could not achieve alone. Over time, as deeper understanding and mutual trust develop, we move beyond merely delivering on a common objective to a relation based on a common vision, shared values and complementary capacities. This is the path of partnership development we have experienced with Nestlé. – IFRC The next phase of their partnership began in 2006. Through conversations, they jointly identified water and sanitation as a priority area for both organizations. This joinedup approach resulted in the IFRC helping to deliver water and sanitation to cocoa growing villages that were part of Nestle’s cocoa supply chain. If you get healthier communities you get better cocoa. A win for both organizations. Due to the success of working together, the partnership expanded to work alongside other company and industry initiatives aiming at strengthening the socio-economic capacity of local communities. The partnership with the IFRC demonstrates how working together to identify shared objective and priorities can have a positive impact not only on local communities, but also on the individual priorities of each organization. Developing a long term relationship and learning from strengths 49B Some of the key lessons learned from this partnership are the importance of learning from each other’s strengths, defining a clear scope for collaboration, and listening. This approach strengthens not only the individual organization but also the partnership as a whole, creating space to build a strong foundation based on trust. This leads to honest conversations about each partner’s responsibilities, what the partnership can achieve, and just as important, what it cannot. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 30 This approach has led to unique collaborations, including integrating the IFRC’s water engineers to work alongside Nestle’s agricultural extension and sourcing teams in the cocoagrowing villages, and Nestle staff working with IFRC teams to deliver programming to local communities. Working together in partnership leverages the IFRC’s expertise working in local communities on humanitarian and development initiatives with Nestle’s corporate expertise. Complementarity in vision, goals and objectives, and joint activities strengthens further collaboration. The water and sanitation work cumulatively is planned to reach over 200,000 people in Ivory Coast and Ghana. Another lesson learned is the importance of understanding where contributions are having the most impact and designing a mechanism to assess this. In the Nestle-IFRC partnership, the organizations meet regularly to monitor progress and submit regular reports to each other’s management on the progress of their interventions. Nestle and the IFRC have been working with each other long enough to understand each other’s priorities and strengths. This allows them to focus on identifying specific areas where the maximum overlap happens and constructing a work plan to implement the project, monitor progress, and measure impact. As a result of the partnership, new technology is being applied with Nestle’s support in the use of mobile phone technology and ‘real time’ remote monitoring and evaluation which is likely to impact IFRC’s programming worldwide. In the context of this work in West Africa, the impact for the IFRC was measured by the improved lives of cocoa farmers through access to clean drinking water, improved sanitation, knowledge of how to stay healthy, and the sense of community ownership over natural resources. For Nestle, it was also healthier, and hence more motivated and productive cocoa growing communities. Photo courtesy of Nestle and the International Federation of the Red Cross © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 31 | Unlocking the Power of Partnership Identifying shared value World Wildlife Fund (WWF) For more than 40 years, society’s demand on natural resources has surpassed what our planet can replenish. These demands include resources consumed for food, fuel and fiber, land on which we build, and forests that filter our air. A growing population and rising middle class will only exacerbate these pressures, unless we recognize that our continued prosperity depends on the natural resources sustained by a healthy planet. Business is increasingly realizing that they are not immune to these pressures. The supply chains of large companies depend on natural resources from all around the world. Natural resource management is more and more tied to operational and reputational risk, and ultimately, to the long-term viability of a company. Corporations therefore have a business interest in understanding how their products and the raw materials used in global operations are impacting local communities, biodiversity, and the environment. While there is a clear imperative to take action, business cannot tackle these risks alone. Cross-sector partnerships are more important than ever to help protect the natural resources that fuel our prosperity and sustain our planet. At WWF, we work hand-in-hand with business to develop solutions to pressing environmental challenges that meet the needs of both people and nature. 9B NGOs are uniquely qualified to build cross-sector partnerships that address complex challenges affecting both global and local stakeholders. NGOs are consistently ranked as the most trusted type of institution by the Edelman Trust Barometer, an annual survey measuring stakeholder perceptions across 27 markets worldwide. In addition to bringing a foundation of trust to cross-sector partnerships, international NGOs leverage their global networks, technical credibility, and convening power to collaborate with companies in ways that meet the needs of people and nature. – WWF Photo courtesy of World Wildlife Fund WWF approaches collaboration with an eye towards understanding the company’s risks and long-term strategy, and then finding alignment with WWF’s priorities across conservation goals and geographic focus areas. Depending on the context and shared goals, WWF takes several approaches to leading cross-sector partnerships, including: © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 32 Helping business understand and prioritize risks 50B WWF works with companies to help them understand the most important environmental and social issues for their business. For example, WWF has developed analytical tools to help companies identify the relative environmental risk and opportunity related to the production of raw materials across global supply chains. Grounded in science-based analysis, WWF then works with companies to develop time-bound, measurable action plans that align with their business priorities and WWF’s expertise. By co-designing these action plans, WWF builds long-term relationships and trust that reduce business risk while advancing our environmental goals. Developing platforms for business to take collective action on common issues 51B WWF approaches sustainability as a precompetitive issue, and brings together companies to develop solutions to shared challenges, including commodity production, water management, and climate emissions. WWF provides a platform for companies to share information, create consensus around sustainability standards, and deliver commitments to help ensure a sustainable supply of raw materials well into the future. Through these efforts, WWF has helped develop credible, third-party certification schemes, such as the Forest Stewardship Council (FSC) and the Bonsucro standard on sustainable sugarcane, which have the potential to make lasting impact on resource scarcity and climate change. Building transformational partnerships with business 52B As part of a transformational partnership with a company, WWF works to integrate environmental sustainability into core business practices. This approach is designed to create significant improvements in operational efficiency and sustainability across the company—from headquarters to manufacturing plant to supply chain. One example is WWF’s longstanding partnership with The Coca-Cola Company, which helped to measurably improve water efficiency, reduce emissions in the company’s manufacturing operations, advance procurement of sustainably certified sugarcane, and support conservation efforts around the world. To achieve results like these, WWF’s partnerships are grounded in specific, measurable targets, which are aligned with the conservation goals of each individual organization. These results are then measured and evaluated with co-developed indicators to ensure partnership objectives have been achieved. Working with business to advance the science 53B WWF engages companies to support scientific research and thought leadership in new frontiers of sustainability. Currently, WWF scientists are leading global efforts to quantify the financial value of nature based on economic interests and human welfare. As part of this initiative, WWF is working with companies to implement pilot projects in their operations, which can then serve as case studies for other businesses looking to account for nature’s value in their decision-making. Raising awareness with consumers and employees 54B WWF engages in a variety of cause marketing partnerships that help drive awareness of, and revenue towards, its conservation work. These partnerships provide a company’s customers and employees with opportunities to demonstrate their support of WWF and contribute to protecting nature. For example, Avon’s Healthy Forests, Beautiful World program raises funds through the sale of specially designated products, sold by its Avon Sales Representatives worldwide and online. Avon then donates a portion of the proceeds to WWF to support reforestation efforts in Indonesia. WWF is dedicated to developing private sector allies to amplify its conservation impact. The challenges of sustainable development are too complex, intertwined, and urgent for any one organization, sector, or country to solve alone. Leveraging their global networks, power to convene across sectors, and technical expertise, international NGOs are well-positioned to enable innovative, cross-sector solutions that help address these complex challenges. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 33 | Unlocking the Power of Partnership Training future engineers in Vietnam USAID Our work in higher education is motivated by a vision much bigger than staffing a factory. This is about giving back to Vietnam, creating an education system that will sustain economic growth and transform Vietnam from an agricultural-based to a knowledgebased economy. 10B – USAID/Intel In Vietnam, the electronics industry is growing rapidly, but training of the country’s engineers has not kept pace. In 2010, on the verge of building a new high-tech manufacturing facility in Vietnam, the Intel Corporation was struggling to hire local engineering graduates with the right skill set—fluency in English, strength in innovative problem solving, competency in modern data analysis and interpretation tools, and the capacity to work effectively on multidisciplinary project teams. Intel recognized the need to partner with the Government of Vietnam and key higher education institutions to strengthen the country’s engineering education system to meet long-term workforce needs, an area that USAID had also identified as critical to supporting Vietnam’s progress toward becoming an inclusive, market-based economy. Together they initiated the Higher Engineering Education Alliance Program (HEEAP) to improve engineering curricula and instruction at five top Vietnamese universities and three vocational colleges. This Global Development Alliance (GDA) – a partnership based on shared value, risks and reward, which uses both cash and in-kind support to build an innovative and sustainable approach to development – was implemented by Arizona State University (ASU) with Intel, Siemens, Danaher Corporation, Honeywell and Cadence Design Systems contributing much-needed software and equipment as well as offering internships and hands-on training opportunities for engineering students. Establishing the partnership 5B HEEAP was established to create a generation of global-minded engineers and transform Vietnam’s electrical and mechanical engineering programs into dynamic, hands-on degrees that effectively prepare graduates to work in a rapidly evolving field. It has focused on training Vietnamese engineering faculty in active learning techniques, curriculum design and project– and problem-based learning methods through summer training programs at ASU. After their return to Vietnam, faculty members train their peers, revamp existing curricula, design new courses, upgrade labs and incorporate new methods into their own teaching. To support them in this transformation, HEEAP has assigned ASU mentors to Vietnamese faculty and grouped participants into teams to collaboratively implement reforms. Faculty – who often held second jobs to supplement their small teaching incomes – were struggling to implement the more demanding changes required for active learning, so Intel provided one-year stipends to hire teaching assistants and acquire other resources. The partnership demonstrated that instructors learn faster and better by returning to the classroom to experiment with new techniques and then also sharing these experiences with peers. From 2010 through 2014, HEEAP trained more than 155 Vietnamese engineering faculty, the majority of whom have redesigned course syllabi to include active learning approaches and have received positive feedback from students. The program also provided scholarships for 300 female students to help them attend vocational © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 34 colleges for training in engineering and encourage greater gender representation in the field. Faculty returning from HEEAP-sponsored ASU trainings found the program useful and reported having applied active learning in their institutions. Noted one participant, “Before HEEAP, we talked, they listened. Now we know how to effectively transfer knowledge to students.” The government of Vietnam was receptive to a collaborative approach; the country had been pursuing a standards-based approach to engineering education as well as international accreditation, and the government gave its support to the partnership’s efforts. HEEAP also took on broader institutional reform, helping Vietnamese universities become internationally accredited through the Accreditation Board for Engineering and Technology (ABET) and working closely with university leadership, the Ministry of Education and Training (MOET), and the Ministry of Labor to strengthen human and institutional capacity at Vietnam’s eight technical universities and vocational colleges. As a result, Ho Chi Minh University of Technology is seeking fast-tracked accreditation, which would make it the first university to receive this accreditation in Vietnam. Intel recognized HEEAP as an integral part of its strategy for strengthening higher education in Vietnam, an important part of its business objectives. More in-demand, qualified engineering talent is now available for Intel’s local business operations, as well as other high-tech companies in Vietnam. The results of the first phase of HEEAP have led Intel to commit to reinvesting in an expansion of the program and further support that extends beyond the timeframe for USAID’s involvement. With strong results, barriers must still be addressed to transform education in Vietnam. Vietnam’s teachers are overworked and underpaid, and sustaining change remains a challenge. For example, with an end to stipends, many faculty were not incentivized nor had the time, energy nor resources to make use of more time-consuming active learning methods – follow up is essential for faculty that have acquired new knowledge and training in active learning through HEEAP. Evaluating the partnership 56B Evaluations of HEEAP indicate that to ensure the sustainability of the program, it must also adopt a broader strategy for affecting institutional change within Vietnam’s educational system. Evaluations indicate that teacher performance, for example, is constrained by educational policies that limit innovation and the application of improved techniques. Now, ASU and Intel are working with MOET to expand HEEAP to train 650 professors per year and implement broader university reforms. In recognition of the fact that these problems also impact vocational and technical colleges, HEEAP has also added a vocational arm to its programming and started implementing in-country proliferation of standards-based teaching methodologies, expanding the reach of HEEAP beyond those who have traveled to the U.S. Program evaluations provide important lessons for the future of this work – they indicate that while challenges remain to ensuring lasting results, HEEAP has also served as an example of strength in partnership. The alliance’s goals align clearly with the objectives of partners and stakeholders. The HEEAP GDA mechanism also proved effective, meeting the objectives of partners and satisfying USAID’s expectations. © 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 35 | Unlocking the Power of Partnership Critical success factors 57B Through this GDA model, USAID was able to share responsibility and reward for reaching project goals with a more flexible private sector partner. This mechanism also allowed the alliance to expand to include other companies and allowed partners to appropriately divide responsibilities for achieving project objectives, adding value and enhancing the likelihood of greater impact from each partners’ unique strengths. Communication among partners and stakeholders has been essential to HEEAP’s success. Despite partners’ varied organizational cultures, vocabularies and constituencies, this model has allowed ASU, as an implementer, to maintain strong lines of communications and reporting among them. And because partners share responsibilities, they have been forced to use adaptive project management styles that are easily navigated by ASU. Sponsors become members of the partnerships Champions Leadership Committee, which meets twice annually and engages academic, government and industry leaders through a platform that helps them align resources with high-impact projects linked to HEEAP’s strategic objectives and focus specifically on progress toward international accreditation for the undergraduate engineering curriculum. The alliance kicked off with leadership workshops for members of MOET and university leadership at target schools. To ensure ongoing local engagement, the committee continues to meet periodically to maintain communication with stakeholders at the highest levels of relevant Ministries, USAID and the Embassy, and corporate partners. © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Unlocking the Power of Partnership | 36 Conclusion 58B While the HEEAP partnership has achieved impressive results and achieved the core objectives of the partners involved, its impact is still small relative to the size of the wider education system challenges in Vietnam. As a result, Intel has issued a challenge to current and potential alliance members to join them in scaling the initiative so that reform may occur more quickly, more broadly and more sustainably. Now in its second phase, HEEAP 2.0 builds upon Intel’s and USAID’s original investments, expanding to a proposed $40 million investment in Vietnam’s human resources and economic development. ASU continues to seek new resources and prioritize partnerships with industry, Foundations and the Vietnamese government to ensure this work continues and sustain the long-term impacts and success of HEEAP. Recognizing the need for a more robust Vietnam-based presence, a new in-country program office will facilitate new partnerships, engage universities and colleges, and support ongoing change in Vietnamese institutions. “Our work in higher education is motivated by a vision much bigger than staffing a factory. This is about giving back to Vietnam, creating an education system that will sustain economic growth and transform Vietnam from an agricultural-based to a knowledge-based economy.” Building upon initial success, HEEAP is now moving to the next level to strengthen education, empower the Vietnamese workforce, meet the growing needs of industry and strengthen business ties between the U.S. and Vietnam. Photo courtesy of USAID © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 528878 Contact KPMG’s International Development Assistance Services Global Chair Timothy A. A. 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Publication name: Unlocking the power of partnership Publication number: 528878 Publication date: January 2016
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